Kuwait Finance House (KFH) held the earnings webcast for highlighting the Group’s financial performance and results during Q1-2025. The webcast was attended by KFH Group Chief Executive Officer, Khaled AlShamlan, Group Chief Strategy Officer, Eng. Fahad Al-Mukhaizeem, and Acting Group Chief Financial Officer and General Manager Investments, Planning and Reporting, Yameen Abdulsattar.

KFH Group Chief Executive Officer, Khaled AlShamlan commenced the meeting by shedding light on the Bank’s financial performance for Q1-2025.

He said: “By the grace of Allah, KFH has reported a net profit to the shareholders of KD 168.1 million for Q1 2025, representing an increase of 3.2% compared to the same period last year. 

Earnings per share reached 9.77 fils for Q1 2025, an increase of 3.1% compared to Q1 2024. Net financing income for the quarter reached KD 318.9 million, reflecting growth of 21.1% compared to the same period last year. Total operating income also saw a significant rise, reaching KD 454.9 million, with an increase of 15.9% compared to Q1 2024. 

Financing receivables as of the end of Q1 2025 stood at KD 19.3 billion, while total assets amounted to KD 36.9 billion. Shareholders' equity reached KD 5.5 billion, and depositors' accounts totaled KD 19.5 billion. Additionally, our capital adequacy ratio remained strong at 19.38%, well above regulatory requirements, underscoring the robustness of our financial position.

Alshamlan pointed out that KFH’s financial performance demonstrates its consistent ability to grow profits sustainably. This success validates the effectiveness of KFH’s efforts at every level in attaining its objectives.

He added that KFH continued to execute its strategic objectives, delivering sustainable and high-quality profits despite a complex operating environment. Our expansion abroad has gained significant momentum, transforming KFH into a global banking entity with a presence in eight countries, including Kuwait, Bahrain, Turkey, Egypt, the UK, and Germany. This growth is supported by an extensive network of over 600 branches, reinforcing our position as a leader in Islamic finance.

AlShamlan indicated that KFH also maintains its leadership as the largest bank listed on Boursa Kuwait, with a market capitalization exceeding KD 13 billion. KFH newly launched "Beyond Horizons" visual identity reflects the bank`s substantial growth, achievements, global reach, and future ambitions. This new identity also underscores KFH`s ongoing commitment to technological advancement, digital innovation, and its leading position in Islamic finance.

KFH remains steadfast in supporting the Kuwaiti economy, especially through financing for corporates, SMEs, and infrastructure projects. We hold the largest SME financing portfolio in the market, demonstrating our commitment to fostering economic growth and job creation.

Additionally, KFH further diversified its funding sources by successfully issuing a 5-year, $1 billion Senior Unsecured Sukuk under the $4 billion Sukuk Program. This issuance strengthens KFH’s long-term liquidity and supports infrastructure projects, productive economic sectors, and customer expansion plans.

In line with our sustainability goals, KFH Capital remains at the forefront of green Sukuk initiatives, reinforcing our commitment to sustainability and ESG standards. Our investments in green finance continue to grow, aligning with global efforts to combat climate change and promote responsible banking.

AlShamlan said:” Our efforts in sustainability have been recognized globally, including our inclusion in the FTSE4Good Index and an "A" rating from MSCI ESG Index.

KFH is dedicated to enhancing customer experience through innovative digital solutions. Our platforms, including KFHOnline, and XTMs offer over 200 electronic services, from instant card printing to QR code-based withdrawals. These advancements ensure seamless, secure, and competitive banking for our customers.

Our employees remain at the heart of our success. Through initiatives like the "Innovation Challenge" and comprehensive training programs, we continue to invest in their development, empowering them to drive innovation and excellence.”

AlShamlan pointed out that beyond finance, KFH continues to lead in social responsibility. KFH advanced its pledge of KD 15 million to establish a cardiac center at Mubarak Al-Kabeer Hospital in partnership with the Ministry of Health. KFH also contributed KD 2 million to the Ministry of Social Affairs’ debt relief campaign, building on our previous KD 20 million initiative to settle insolvent individuals’ debts in coordination with the Ministry of Justice. These efforts reflect the Bank’s commitment to social well-being and sustainable development.

AlShamlan added that KFH's exceptional performance has been acknowledged with approximately 15 prestigious awards in 2025, including "Best Islamic Bank in the Middle East" and "Best Bank in Kuwait" from EMEA Finance Magazine. These awards reflect our commitment to excellence, sustainability, and leadership in the banking sector.

Additionally, KFH attained ISO 22301 certification for its Business Continuity Management Systems (BCMS), reflecting the bank`s readiness to face potential risks.

He concluded: “As we move forward, we remain focused on sustainable growth, innovation, and delivering value to our stakeholders. With our solid financial foundation and strategic vision, KFH is well-positioned to achieve even greater milestones in the coming years.”

Eng. Fahad Al-Mukhaizeem, Group Chief Strategy Officer

Meanwhile, Group Chief Strategy Officer, Eng. Fahad Al-Mukhaizeem shared insights into Kuwait’s economic landscape and KFH’s strategic progress in the first quarter.

He said: “Kuwait’s economy remains resilient amid global uncertainties. The IMF projects real GDP growth to recover to 2.6% (reaching KWD 40.7 billion at constant prices in 2025). The oil sector is projected to grow by 3.1%, driven by an easing of OPEC+ cuts, boosting oil production and export revenues. The non-oil sector is anticipated to grow by 2.1%, fueled by fiscal stimulus driving significant economic expansion.

Kuwait’s average crude oil export price closed at USD 77.99 per barrel at the end of March 2025, down 9.7% from last year. Despite this decline, it supports a stable economic foundation as Kuwait advances its diversification efforts.

Inflation has eased to an average annual rate of 2.4% in 2025, down from 3% in 2024 reflecting the Central Bank of Kuwait’s effective monetary policies, which balance price stability with economic growth. Looking ahead, Inflation is expected to remain subdued and will be shaped by a mix of domestic and global factors, including oil market dynamics, monetary policy, fiscal strategies, and external economic conditions including the trade war.”

Al-Mukhaizeem pointed out that in September 2024, the Central Bank of Kuwait lowered the discount rate by 25 basis points to 4.00%. This move has fostered credit growth and investment, further fueling economic expansion. Kuwait’s strong credit ratings—A+ from Standard & Poor’s, A1 from Moody’s, and AA- from Fitch, all with stable outlooks—reinforcing its appeal to global investors.

He added that the recently introduced Public Debt Law is expected to enhance Kuwait’s economic flexibility by enabling the government to fund strategic development projects and advance diversification efforts. For banks, including KFH, it opens new avenues to develop innovative Sharia-compliant investment products, expand lending portfolios, and boost revenues through managing these financial instruments. This reform underscores Kuwait’s commitment to fostering a dynamic business environment, driving sustainable growth, and reinforcing confidence in our financial markets.

Al-Mukhaizeem mentioned that the capital market performed strongly in Q1 2025. Boursa Kuwait’s market capitalization grew by 10.8% year-on-year to KWD 47.8 billion, with traded volume surging 69.3% to 24.3 billion shares. In this vibrant market, KFH remains the largest listed company, with our market capitalization rising 8.9% to KWD 13.2 billion. This performance reflects confidence in our strategic direction and ability to deliver consistent results.

In 2025, Kuwait’s economic strategy is expected to make bold strides to reduce reliance on oil through targeted reforms and investments. Key sectors like financial services, technology, logistics, and tourism are emerging as pillars of a diversified economy. How is KFH contributing to this transformation? Our focus on innovative financial products and digital solutions aligns closely with these goals, supported by regulatory reforms that streamline licensing and strengthen investor protections.

Al-Mukhaizeem said: “at KFH, we have built on our strong 2024 performance with an excellent start to 2025. Our strategy emphasizes strengthening our financial position, expanding digital capabilities, and growing our global footprint. Our diversified business model, blending robust domestic performance with strategic international expansion, continues to drive success. Looking ahead, we are confident in navigating the evolving economic landscape. Our strong capital base, diverse revenue streams, and investments in technology and talent position us to seize new opportunities. KFH remains committed to pioneering Sharia-compliant solutions that meet our customers’ needs while supporting Kuwait’s economic diversification.”

Acting Group Chief Financial Officer and General Manager Investments, Planning and Reporting, Yameen Abdulsattar

Meanwhile, Acting Group Chief Financial Officer and General Manager Investments, Planning and Reporting, Yameen Abdulsattar, presented the financial performance of KFH group for the first quarter of 2025.

Abdulsattar said that the Group has achieved Net Profit After Tax attributable to Shareholders of KD 168.1mn higher by KD 5.3mn or 3.2% compared to Q1-24 of KD 162.8mn.

The higher profit is mainly from an increase in total operating income. Partly offset by an increase in operating expenses and provision charge.

Financing income has increased by KD 73.6mn or 10.9% compared to same period last year mainly due to an increase in yield.

Net financing income at KD 318.9mn increased by KD 55.5mn or 21.1% compared to same period last year mainly due to an increase in financing income by KD 73.6mn offset by increase in finance cost and distribution to depositors by KD 18.1mn.

Abdulsattar mentioned that the contribution of net financing income to operating income increased from 67% in Q1-24 to 70% in Q1-2025 due to an increase in net financing income.

Group NFM for Q1-2025 at 3.44% is higher by 55bps compared to Q1-2024. Average yield improved by 99bps while the average COF also increased by 44bps. This is the result of both the impact of rate changes and the repricing of assets and liabilities during the period.

Abdulsattar pointed out that the Group total impairment charge increased by KD 23.9mn compared to Q1-2024.

KFH cautious approach towards provisioning have contributed to financing provision balance exceeding ECL required as per CBK IFRS 9 guidelines by KD 552mn as of 31 March 2025.

Application of IAS-29 on the financial statements of Kuvyet Turk resulted in recognition of net monetary loss of KD 42.1mn in the current period, lower by KD 9.4mn compared to Q1-2024 due to lower rate of inflation in Turkey.

Abdulsattar pointed out that the Total Assets at KD 36.9bn increased by 0.4% in Mar-2025 compared to Dec-2024.

Net financing receivables at KD 19.3bn increased by 1.1% compared to Dec-2024 mainly on account of the increase in corporate portfolio.

Investments in debt securities at KD 6.9bn have increased by 1.4% compared to Dec-2024.

Additionally, deposits for Q1-2025 at KD 19.5bn have increased by 1.3% compared to Dec-2024 mainly due to an increase in CASA deposits.

The contribution from CASA deposits to total group customer deposits as of 31 Mar-25 was 45.5%. On an overall basis the group continues to benefit from a large pool of low-cost deposits.